Global demand for ground granulated blast furnace slag (GGBFS) is expected to remain dominated by China by 2025, but its market share is likely to decline sharply whereas other Asian countries – namely India and Japan - are forecast to drive growth, according to CW Research’s 2020 update of the Global Ground Granulated Blast-furnace Slag Market Report and Forecast.
GGBF slag demand in the Asia ex-China region is expected to increase at a CAGR of 5 percent over the period 2020E-2025F.
“In the long-term, Chinese consumption of GGBFS is expected to be less than in 2015 as steel intensity decreases in contrast to the robust growth that is likely to occur in the rest of Asia. However, given paucity of new BFs, existing capacity will likely see higher utilization as the focus on mitigating the carbon emissions from the cement production process gathers increasing importance,” states Carolina Pereira, Manager, Advisory & Research at CW Group.
Japan to continue to dominate Asia ex-China production
Asia ex-China’s production of crude steel, and, therefore GGBFS is dominated by India, Japan and South Korea accounting for an estimated 80 percent of regional production. Japan is predicted to remain Asia ex-China’s largest producer and globally the largest exporter of GGBFS in 2025F.
Japan’s production of GGBFS is estimated to increase to around 22 million tons by 2025F. Meanwhile, India’s GGBFS production is expected to reach close to 16 million tons in 2025F.
India, the world’s second largest cement producer and consumer, has been focused on increasing the use of GGBFS in cement industry to further optimize the cost of production of cement and reduce carbon emissions.
Europe remains the second largest exporting region of GGBFS in 2020E
Europe was the second largest exporting region in 2020E, next only to Asia, and this trend is expected to continue until 2025F.
The European market size is also expected to increase to almost USD 1 billion in 2020E with contributions mostly from Germany, France, Belgium, which are expected to see higher market prices as a combination of increased demand as well as higher production costs in order to enact policies to further reduce carbon emissions.
North America unlikely to see significant demand growth
The United States is expected to see GGBFS consumption from 2020E to 2025F grow at a CAGR of more than 2 percent, while Mexico and Canada are expected to witness growth at CAGR’s of more than 3 and almost 2 percent, respectively.
Pricing levels are expected to remain high due to constrained supply in the region, especially in the United States, which means the market is expected to remain one of the largest importers of GGBFS globally by 2025E.
The 2020 update of the Global Ground Granulated Blast-furnace Slag Market Report and Forecast provides an in-depth analysis of the global blast furnace slag market. The report presents the latest data on the market size (volume and value) sourced through both primary and secondary research. Historic and five-year forecast data showcased include figures on consumption, domestic production, exports and imports, price dynamics, as well as qualitative information on trends in the industry. The market intelligence provided in the report is divided into regional demand, as well as by end user, providing a strategic perspective on the evolution and outlook for the industry. Find out more about the report here.